Regular Agenda - June 18, 2015
REGULAR AGENDA OF THE
LOS ANGELES BOARD OF HARBOR COMMISSIONERS
THURSDAY, JUNE 18, 2015 AT 8:30 A.M.
PORT OF LOS ANGELES ADMINSTRATION BUILDING
425 S. PALOS VERDES STREET
SAN PEDRO, CA 90731
BOARD OF HARBOR COMMISSIONERS
Ambassador Vilma S. Martinez, President
Vice President David Arian
Commissioner Patricia Castellanos
Commissioner Anthony Pirozzi, Jr.
Commissioner Edward R. Renwick
A. OPENING STATEMENT - AN OPPORTUNITY FOR MEMBERS OF
THE PUBLIC TO ADDRESS THIS BOARD
B. COMMENTS FROM THE PUBLIC ON NON-AGENDA ITEMS
C. EXECUTIVE DIRECTOR REMARKS
D. REPORTS OF THE COMMISSIONERS
E. BOARD COMMITTEE REPORTS
F. APPROVAL OF THE MINUTES
Special Meeting of June 8, 2015
G. PRESENTATION
1. Space X
2. Community Investment Grants
3. Trade Connect
H. BOARD REPORTS OF THE EXECUTIVE DIRECTOR
CONSENT ITEMS (1 - 5)
Cargo & Industrial Real Estate
1. Re: RESOLUTION NO. ____________ - FIRST AMENDMENT TO PERMIT NO. 353 WITH THE CITY OF LOS ANGELES DEPARTMENT OF GENERAL SERVICES
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) is proposing to amend Permit No. 353 (Permit) by adding additional premises covered under Order Nos. 2130, 2680, and 3469 (Orders) with the City of Los Angeles Department of General Services (GSD). The Permit is for a term of 50 years and expires on December 31, 2024. The consolidation of the Orders into Permit 353 was contemplated as: (a) the terms of the Orders have exceeded 50 years and could not be extended and (b) the Orders, as well as the Permit, were all due for compensation reset with the exception of Order No. 2680. The consolidation will also help facilitate the management and compensation adjustment process for these entitlements, as the premises are used for similar purposes related to sewer pipelines and right-of-ways. The compensation reset for the Permit and Orders has been due since January 1, 2015 and July 2013, respectively. Even though the Permit and Orders have had prior resets, the land value of $12 per square foot (s.f.) used for calculation of rent did not change since 1993, which resulted in no upward rent adjustments with the exception of Order No. 2680, which was adjusted upwards to $22 per s.f. in 2013. The proposed First Amendment will: (a) add the premises covered under the Orders into Permit No. 353, (b) adjust compensation to reflect current fair market land value of $32 per s.f. for all of the premises, while obtaining a 10 percent rate of return, which yields an annual rent of $237,840, (c) include an annual Consumer Price Index (CPI) adjustment factor, and (d) reconcile the rent under the Permit and Orders. GSD has the financial responsibility to make rental payments under the Permit.
Recommendation: Board resolve to (1) approve the First Amendment to Permit No. 353 (substantially in the form of Transmittal 4) with the City of Los Angeles Department of General Services; (2) direct the Board Secretary to transmit the First Amendment to Permit No. 353 to the City Council for approval on behalf of the Harbor Department pursuant to Los Angeles City Charter Section 606 and request that the City Council consider and approve the First Amendment on behalf of both the Harbor Department and on behalf of the City of Los Angeles General Services Department and Department of Public Works pursuant to Los Angeles City Charter 370. Thereafter, the First Amendment should be returned to the Los Angeles Harbor Department which, in turn, will transmit the First Amendment to the Department of General Services. (3) authorize the Executive Director to execute and the Board Secretary to attest to the First Amendment upon Board, and City Council approval; and (4) adopt Resolution No.__________.
Environmental Management
Transmittal 1
SUMMARY: AMEC Environment and Infrastructure, Inc. (AMEC) was awarded Agreement No. 13-3141 (Agreement) on June 20, 2013, to provide technical support for water and sediment quality programs, biological resources management and regulatory program development and compliance. The Agreement was approved for a three-year term for an amount not-to-exceed $3,800,000. As of January 1, 2015, the company changed its name to Amec Foster Wheeler Environment & Infrastructure, Inc. to reflect the combination of its parent company, AMEC plc, and Foster Wheeler AG. This action is solely administrative in nature to reflect the company name change. All other terms and conditions of the agreement remain unchanged. The City of Los Angeles Harbor Department (Harbor Department) will continue to be responsible for expenses under this Agreement.
Recommendation: Board resolve to (1) approve the First Amendment to Agreement No. 13-3141 to reflect company name change to Amec Foster Wheeler Environment & Infrastructure, Inc.; (2) authorize the Executive Director and the Board Secretary to execute and attest to said First Amendment to Agreement No. 13-3141 for and on behalf of the Board; and (3) adopt Resolution No.____________.
Environmental Management
Transmittal 1
SUMMARY: In May 2013, the Board of Harbor Commissioners (Board) approved funding for a Technology Advancement Program (TAP) Electric Drayage Pre-Commercial Demonstration (EDPCD) Project (Project) with Transportation Power, Inc. (TransPower) located in Poway, CA, and entered into Agreement No. 13-3139 (Agreement). The Project is the design, development, and demonstration of seven electric drayage trucks which utilize advanced zero-emission electric propulsion systems. The total TAP funding amount allocated for this Project is $300,000 which is shared equally by the City of Los Angeles Harbor Department (Harbor Department) and the Port of Long Beach (POLB) for a total of $150,000 from each entity. TAP funding was leveraged with funding from the California Energy Commission (CEC), Department of Energy (DOE), and TransPower for a total Project cost of approximately $4.4 million. To date, a total of $190,000 has been expended through the Agreement and $110,000 remains unspent, of which $55,000 will be reimbursed to the Harbor Department by POLB. Currently, four electric drayage trucks are in operation and three are scheduled to be put into drayage service by September 2015. The seven trucks are taking longer to complete and deploy than expected because they are being redesigned to improve levels of efficiency and reliability. The redesign process delayed the completion of the first four trucks by six months to a year, and continuing minor improvements have resulted in additional delays in completing the last three trucks. The Agreement is due to expire on June 24, 2015. Staff recommends that the Board approve the First Amendment (Amendment) to the Agreement to extend the contract term of the Project for an additional year, for a total term of three years. The proposed technology, if successfully demonstrated, would eliminate all tailpipe emissions from the seven EDPCD drayage trucks including diesel particulate matter (DPM), sulfur oxides (SOx), and oxides of nitrogen (NOx) emissions. The Harbor Department is financially responsible for payments to TransPower in accordance with the Agreement for the remaining agreement balance of $110,000, of which $55,000 will be reimbursed to the Harbor Department by POLB. All associated expenses have been budgeted in fiscal year 2015/16.
Recommendation: Board resolve to (1) approve the First Amendment to Agreement No. 13-3139 between the City of Los Angeles Harbor Department and Transportation Power, Inc. extending the contract term for one year, for a total contract term of three years; (2) authorize the Executive Director to execute and the Board Secretary to attest to said First Amendment to Agreement No. 13-3139 for and on behalf of the Board; (3) adopt Resolution No.____________.
Port Pilots
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
PERMANENT ORDER NO.____________ - AMENDING PORT OF LOS ANGELES TARIFF NO. 4, SECTION THREE - PILOTAGE, ITEM 360 (b) AND ITEM 370, VESSEL TRAFFIC SERVICE USER FEES
SUMMARY: The Marine Exchange of Los Angeles-Long Beach Harbors, Inc. operates a Vessel Traffic Service (VTS) that currently serves The Ports of Los Angeles and Long Beach (The Ports). The VTS monitors vessel traffic within the Los Angeles and Long Beach harbors and approaches, and provides mariners with timely, relevant, and accurate information for the purpose of enhancing safe, environmentally sound, and efficient maritime transportation. The Marine Exchange is requesting to increase VTS User Fees to offset a 24 percent decline in ship counts caused by the continued trend of consolidating cargo into fewer but larger ships calling at The Ports. VTS User Fees are based on the Length Overall and Gross Tonnage of commercial vessels and intended to be consistent within the San Pedro Bay Port Complex. Upon approval, Tariff No. 4 will be amended to increase VTS User Fees ranging from approximately $39 to $391 per ship, effective July 1, 2015. Fees will continue to be collected by the Marine Exchange. Harbor Department funds will not be required for this proposed action. The Marine Exchange has discussed the proposed fee increase with Port of Los Angeles stakeholders. Staff recommends the proposed amendment to Tariff No. 4. The VTS User Fees at the Port of Long Beach have historically mirrored those of The Port of Los Angeles. It is anticipated that The Port of Long Beach will bring a similar Tariff amendment regarding VTS User Fees to the Long Beach Harbor Commission along the same time frame as this recommendation.
Recommendation: Board resolve to (1) approve the Amendments to Port of Los Angeles Tariff No. 4, Section Three Pilotage - Vessel Traffic Service, Item No. 360 (b) Vessel Traffic Service Invoicing and Payment Procedures, and Item 370 Vessel Traffic Service User Fees, subject to the California Association of Port Authorities' review and approval, and authorize the Executive Director to work with California Association of Port Authorities to secure this approval or proceed to take independent action in accordance with California Association of Port Authorities procedure; (2) adopt Temporary Order No.____________ to amend the Port of Los Angeles Tariff No. 4, Section Three Pilotage - Vessel Traffic Service, Item No. 360 (b) Vessel Traffic Service Invoicing and Payment Procedures, and Item 370 Vessel Traffic Service User Fees; (3) adopt Permanent Order No.____________ to amend the Port of Los Angeles Tariff No. 4, Section Three Pilotage - Vessel Traffic Service, Item No. 360 (b) Vessel Traffic Service Invoicing and Payment Procedures, and Item 370 Vessel Traffic Service User Fees; (4) authorize the Board Secretary to certify to the adoption of the Temporary Order by the Board and cause the same to be published once in a newspaper printed and published in the City of Los Angeles, to take effect prior to adoption by Ordinance for a period not-to-exceed 90 days pursuant to Charter Section 653(b); (5) direct the Board Secretary to transmit to the City Council for approval the Permanent Order and the Ordinance approving and authorizing the amendments to the Port of Los Angeles Tariff No. 4 pursuant to City Charter 653(a); and (6) authorize the Board Secretary to execute the Temporary Order, Permanent Order and Ordinance amending Tariff No. 4 as stated above, and upon its publication, transmit the Orders and Ordinance to the Chief Wharfinger for implementation and posting to the City of Los Angeles Harbor Department’s website.
Executive Office
Transmittal 1
SUMMARY: The Harbor Community Benefit Foundation (HCBF) is a non-profit organization that receives funding from the Port Community Mitigation Trust Fund (PCMTF) from the Los Angeles Harbor Department (Harbor Department) and operates the grant administration process of soliciting, selecting and approving grants from the PCMTF under certain guidelines and subject to Board of Harbor Commissioners (Board) approval. The HCBF bylaws, adopted by the HCBF Board of Directors (HCBF Board) and approved by the Board, establish a maximum six-year term limit for its Directors, while service as an Officer is limited to four consecutive years. On January 23, 2015, the HCBF Board approved an amendment to delete the four-year term limit for Officers from its bylaws. By deleting this limit, Officers may serve without any maximum term limit so long as the HCBF Board continues to re-elect them, allowing for continuity of service. The bylaws of the HCBF and the Operating Agreement of the TraPac Memorandum of Understanding state that changes to the HCBF bylaws requires approval from the Board in order to be effective, so long as the HCBF is holding, receiving or using PCMTF funds. HCBF is requesting approval from the Board to amend its bylaws. No funding from the Harbor Department is required for this request.
Recommendation: Board resolve to (1) approve the amendment to Section 9.2 of Harbor Community Benefit Foundation Bylaws to delete the four-year term limit for Officers, thereby removing term limits altogether; and (2) adopt Resolution No.____________.
REGULAR ITEMS (6 – 8)
Debt & Treasury
6. Re: RESOLUTION NO. ____________ - TO RENEW THE COMMERCIAL PAPER PROGRAM
Transmittal 1
Transmittal 2
Transmittal 3
Transmittal 4
Transmittal 5
Transmittal 6
SUMMARY: The City of Los Angeles Harbor Department (Harbor Department) staff requests approval of several documents to facilitate renewal of the Commercial Paper (CP) Program for a period of three years in an amount not-to-exceed $200 million. The Harbor Department uses the CP Program to provide short-term financing for capital projects and other short-term liquidity needs. The current documents for the existing CP Program will expire in July 2015. The Harbor Department is financially responsible for payment of the fees incurred under the commercial paper program. All associated fees have been budgeted in fiscal years 2014-15 and 2015-16 budgets.
Recommendation: Board resolve to (1) adopt, pursuant to the Los Angeles City Charter (LACC) Section 609 and the Bond Procedural Ordinance of the City of Los Angeles Administrative Code (LAAC) Sections 11.28.1 through 11.28.9, the attached Resolution approving the following principal documents related to the Harbor Department's Commercial Paper Program: Two Dealer Agreements with Ramirez & Co., Inc. and US Bancorp; First Supplement to the Amended and Restated Issuing and Paying Agent Agreement with US Bank National Association; First Amendment to the Line of Credit (LOC) Agreement and Consent to Replacement of Dealers with Mizuho Bank; the Amended and Restated Fee Letter with Mizuho Bank; and an Offering Memorandum; (2) direct the Executive Director or his designees to jointly and severally do any and all actions necessary consistent with the Resolution to establish and implement the issuance and remarketing of the Commercial Paper Notes, subject to the right of the City Council to review such documents pursuant to the requirements of LAAC Section 11.28.2; (3) direct the Board Secretary, pursuant to LACC Section 609 and the Bond Procedural Ordinance of the LAAC Sections 11.28.1 through 11.28.9, to certify that the Board has adopted the Resolution and, on behalf of the Harbor Commissioners, immediately transmit for further processing certified copies of the Resolution, Board report, and all related documents to the Mayor, the Office of the City Administrative Officer, and the City Council; and (4) adopt Resolution No.____________.
Construction
Transmittal 1
Transmittal 2
Transmittal 3
SUMMARY: The Berths 214-220 Redevelopment Project (Project) is a component of the ten-year lease extension of the Yusen Terminals, Inc. Container Terminal. The Project includes dredging; wharf improvement; backland improvements; and utility relocation and removals. The lowest responsive and responsible bidder is Manson Construction Company located in Long Beach, California. The contract amount, plus a 10% contingency, is $44,617,210, and the contract duration is 660 calendar days. The Project is partially funded under the Proposition 1B, State Trade Corridor Improvement Fund, through the State of California Department of Transportation, in the amount of $8,401,000. The Harbor Department is financially responsible for payment under the proposed construction contract.
Recommendation: Board resolve to (1) find that, in accordance with City Charter Section 1022, work under the subject contract can be performed more feasibly by an independent contractor rather than by City employees; (2) award and approve, subject to Recommendation No. 3 below, Specification No. 2763 for Item Nos. 1 through 73 of the proposal schedule to Manson Construction Company, in the amount of $40,561,100; that a 10% contingency not included in the original contract amount be applied for a total authorization of $44,617,210; and authorize payment from the City of Los Angeles Harbor Department Construction Account. The contract time for performance of the work will be 660 calendar days from the Notice to Proceed; (3) authorize the Executive Director to execute and the Board Secretary to attest to this contract for and on behalf of the Board; (4) in accordance with City Charter Section 655 (g), delegate and authorize the Executive Director to adjust final bid quantities and accept the construction contract upon its completion; and (5) adopt Resolution No.____________.
Construction
Transmittal 1
Transmittal 2
Transmittal 3
SUMMARY: The Berth 142 Crane Maintenance Building Project (Project) is part of the overall state-of-the-art automated container terminal development at the TraPac terminal. The Project will build an approximately 5,000 square-foot facility for automated shuttle carriers, the equipment operating within the automated backland development. It is recommended that all bids for Specification No. 2760 be rejected and that the Project be re-advertised as it is in the best interest of the City of Los Angeles Harbor Department (Harbor Department) to do so to ensure the most competitive bids and lowest cost to the Harbor Department.
Recommendation: Board resolve to (1) reject all bids for Specification No. 2760 and authorize the Executive Director to re-advertise the Berth 142 Crane Maintenance Building Project; and (2) adopt Resolution No.____________.
I. CLOSED SESSION
1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to the proposed ground lease for Ports O’Call site:
Property: Berths 74-83, San Pedro, California
City Negotiator: Michael Galvin
Tenant Negotiators: Eric Johnson, Brian Saenger
Negotiating Parties: City and LA Waterfront Alliance
Under Negotiation: Price and Terms
2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to an amendment to the agreement with Crafted at the Port of Los Angeles:
Property: 112 E. 22nd Street, San Pedro, California
City Negotiator: Michael Galvin
Tenant Negotiators: Wayne Blank, Howard Robinson
Negotiating Parties: City and Crafted at the Port of Los Angeles
Under Negotiation: Price and Terms
3. CONFERENCE WITH LEGAL COUNSEL - INITIATE LITIGATION
(Subdivision (d)(4) of Government Code Section 54956.9)
Initiation of litigation pursuant to subdivision (d)(4) of Section 54956.9: one case.
Commission actions, except actions which are subject to appeal or review by the Council pursuant to other provisions of the Charter, ordinance or other applicable law, are not final until the expiration of the next five meeting days of the City Council during which the Council has convened in regular session. If the Council asserts jurisdiction during this five meeting day period the Council has 21 calendar days thereafter in which to act on the matter.
Please note that this agenda is subject to revision in accordance with the Brown Act. In the event the agenda is revised prior to the meeting, Port staff will endeavor to post the revised agenda on the Port’s web site (http://www.portoflosangeles.org). Updated agendas also will be available in hard copy at the meeting. Live Board meetings can also be heard at: (213) 621-City (Metro), (818) 904-9450 (Valley), (310) 471-City (Westside) and (310) 547-City (Harbor).
As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and, upon request, will provide reasonable accommodation to ensure equal access to its programs, services, and activities.
Sign language interpreters, assistive listening devices, and translation services may be provided. To ensure availability, 72-hour advance notice is required. Contact the Commission office at (310) 732-3444.
Interpretes de señas, sistemas auditivos y servicios de traducciones están disponibles. Para asegurar disponibilidad, se requiere solicitarlos con 72 horas de anticipación. Para hacer la solicitud, llame a la oficina de la Comisión al (310) 732-3444.